If the MPC is 0.9,the multiplier for a change in autonomous spending is

Name: If the MPC is 0.9,the multiplier for a change in autonomous spending is
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Quizplus · Accepted Answer

The multiplier equals 1/MPC, where MPC is the marginal propensity to consume. Therefore, if the MPC is 0.9, the multiplier would be 1/0.9, which is approximately 10. Hence, a change in autonomous spending would result in a ten-fold increase in total spending in the economy.

If the MPC Is 0